Healthcare business offers one of the basic needs of every individual, and everyone has at one time or the other required the services of medical personnel or establishment (hospital, medical clinic, pharmacy, nursing home, etc).

Most countries have more population than the currently established hospitals can cater for, and so most hospitals are over-stretched, and with the population growth, there is the need for more hospitals.

Starting and managing your own hospital business is very capital intensive and requires a lot of planning to accomplish.

You will also need to get the necessary permits from the various regulatory bodies and the government of the country or state you hope to establish the hospital in.

You also need to determine the capacity of the hospital you want to open and whether it will be a multi-specialty, specialist, or general hospital.

Here are a few things you should put into consideration when starting a hospital business:

  • Hospital Location

Choose a location that is easily accessible to people in case of emergencies.

The area also needs to have a good transportation network and infrastructure and should be situated close to or in an area with high population density if you want to succeed in the business.

Also worth considering is the number of hospitals in the region you have chosen as you may not be able to pool in as many clients if your hospital is situated too close to another one.

  • Real Estate

Land for the hospital can be purchased or leased and the hospital building must conform to the standards set and agreed on by the medical, technical, and environmental regulatory bodies of the country and locality of the hospital.

A lot of documents such as a land deed, architectural plans need to be approved by the relevant authorities.

If you wish to purchase the land, then you have to consider the systems for medical waste disposal, infection and disease prevention, parking space, and others.

You will be given an occupation certificate when all formalities have been cleared.

  • Medical Equipment and Facility

Medical equipment is a major part of starting up a hospital business and a lot of attention should be given to it.

Every piece of equipment must be standard, top-notch, and in top form always so attention must be paid to the quality of equipment acquired as the lives and health of your patients could depend on it.

Equipment procurement may be costly especially if it has to be imported as custom duties and taxes may apply. It is worthy of note that the kind of hospital will determine the kind of equipment and facilities to be used.

For example, an orthopedic hospital and a pediatric hospital will have different needs for medical supply businesses.

  • Power and Water Supply

Electricity is essential to the running of any establishment, more especially a hospital as a majority of the equipment runs on electricity, so provision must be made for backup power in case the local power supply fails as may be the case, especially in developing countries.

You do not want to face a power outage when a critical procedure is being carried out.

Water is also essential in the running of a hospital for various purposes. The water needs of the hospital should be calculated and this may vary greatly depending on the size, capacity, and requirements of the hospital.

  • Sewage and Biomedical Waste

Waste disposal and drainage system should be properly planned into the construction of the hospital.

You may also need to obtain permission from the relevant authorities to install incinerators that are required to dispose of body parts and other medical waste. This is important even in a low-cost hospital business model.

  • Workers and Members of Staff

Healthcare is a highly sensitive and competitive business to own, and quackery should not be tolerated if you want your hospital to stand out among its competitors.

Always hire and invest in employees that are not just qualified and good at what they do, but also have a passion and commitment to deliver quality healthcare to patients.

Apart from medical personnel, you will also need engineers, technicians, receptionists, wardens, security, cleaners, and others to ensure the smooth running of the hospital.

  • Permits and Licenses

Various permits and licenses have to be obtained from the state and local government councils, and medical regulatory bodies and associations at different stages of the business development, especially at inception.

This will give your hospital the legal grounds to operate freely.

In India, among such licenses are a Fire license, which is necessary to show that a hospital will not cause loss of life or damage and a health license that authorizes you to give healthcare to patients.

  • Management and Marketing

What might be a business process used at a hospital? A management team has to be set up to handle the running of the hospital. This team is responsible for setting up policies, hiring, and payment of staff, among other responsibilities necessary for the hospital to operate smoothly.

A marketing team is also necessary to coordinate with other medical associations, manage the hospital’s public image, and create avenues for generating revenue as well.

Starting a hospital is a complex venture and requires a lot of careful planning and consultation.

The above-stated points should give you an idea of what is involved.

You will need to draw out a detailed business plan and follow a lot of guidelines, obtain various certifications and approvals. It may take a lot of time and effort, but it will be worth it in the long run.


Here is a sample business plan for starting a hospital.

The hospital business is a subset of the health care industry which is ranked as one of the fastest-growing industries in the world. Aside from being ranked as one of the fastest-growing industries in the world, the health care industry is ranked among the largest industries in the world too.

If you are already set towards starting a private hospital business and are planning on writing a business plan, then you will find this simple business plan very useful.

BUSINESS NAME: John Rutherford Hospital.

  • Executive Summary
  • Our Products and Services
  • Vision Statement
  • Mission Statement
  • Business Structure
  • Market Analysis
  • Sales and Marketing Strategy
  • Financial Plan
  • Competitive Advantage
  • Conclusion

Executive Summary

John Rutherford Hospital is a standard and duly registered, certified, and licensed hospital which will be located in Boston, United States.

The hospital will be very motivated towards providing nothing short of the very best services to clients not just in Boston but in the whole of the United States.

John Rutherford Hospital will be owned by Dr. John Rutherford (Jnr.) who will also be the major financer of the startup budget towards starting the business in Boston.

The other part of the startup budget, however, will be sourced from the owner’s former business associates and his bank.

Our Products and Services

John Rutherford Hospital is in the health care industry to make sure clients are well catered for medically.

We are in this line of business to make profits too, and the following are the various products and services we will be offering our clients:

  • Inpatient care
  • Outpatient care
  • Diagnostic X-ray services
  • Operating room services
  • Clinical laboratory services
  • Anatomical pathology services
  • Personal Injury Case Management
  • Occupational, Physical, and Speech Therapy

Vision Statement

We have it as our vision for our hospital to become the first choice of clients for excellent medical and health care services. Also, we want to make sure of becoming ranked among the top ten (10) health care service providers in the whole of the United States of America before our tenth year of operating as a hospital.

Mission Statement

We are in this line of business to fully serve our clients not just in Boston but in the whole of the United States.

John Rutherford Hospital will provide very affordable health care services that can fit into the budget of both high-income earners and low-income earners.

Business Structure

John Rutherford Hospital is a hospital that will be raised on a very solid foundation.

We are duly concerned with providing the very best and professional health care services to our clients. We will make sure to recruit only qualified and experienced professionals who have fully met our stringent requirements.

This is to ensure that we provide our clients with the very best health care services. The following are the various professionals we will be recruiting into our business:

  • Chief Executive Officer
  • Chief Medical Director
  • Doctor
  • Surgeon / Dentist
  • Nurses / Nurse Aides
  • Pharmacist
  • Information Technologist
  • Sales and Marketing Executive
  • Admin and Human Resources Manager
  • Accountant / Cashier
  • Cleaners
  • Customer Care Executive

Market Analysis
Market Trend

The health care industry is very dynamic and thriving too. The industry is still growing despite the huge success it has achieved with the help of modern technology.

Today, many illnesses that were once very difficult to cure or even manage have become curable and easy to manage as well, thanks to the improvement in the industry utilizing today’s technology.

Target Market

Our target market encompasses every person living in Boston, and the United States.

Our target market is not limited to any particular group, since everyone at one point in time or another may see the need to visit the hospital.

However, we have categorized our target market into the following:

  • Residents in the location where we will be operating our business
  • Sportsmen and women who have sustained an injury
  • Expectant Mothers
  • Schools
  • Corporate Organizations and financial institutions such as banks and insurance companies
  • Health Management Organizations

Sales and Marketing Strategy

We have been able to carry out a thorough market survey before we resolved on sticking with our current location for our hospital. This was to make sure that we can deeply penetrate the market once we fully launch our business.

Nonetheless, we have come up with the following sales and market strategies to ensure we promote our business to prospective clients:

  • We will start up by making sure we put the word out there concerning our business. We will carry this out by sending introductory letters to all the residents in our location, corporate organizations, and business owners.
  • We will make sure to advertise our hospital on various local media such as local TV and radio stations, local newspapers, etc.
  • We will list our hospital on yellow page ads.
  • Social media will be utilized to the fullest in promoting our hospital. We will make sure to have a Facebook page, as well as open Twitter and Instagram accounts.
  • We will always ensure we keep up-to-date with the latest developments in the industry by making sure of attending healthcare-related expos and exhibitions.

Financial Plan
Source of Startup Capital

Having carried out our feasibility study thoroughly, we have come to realize that we will need a total of $1.3M to fully kick start our business in Boston, United States.

A total of $600,000 has thus far been raised by the owner, Dr. John Rutherford (Jnr.). The remainder will be sought from the owner’s bank and former business associates.

Competitive Advantage

There is huge competition in the health care industry, not only among the hospitals but also between hospitals and other health care service providers such as health centers, home health care services, community clinics, etc.

Our competitive advantage in the industry lies in the quality of client services that we will be providing our clients.

We are very convinced that we will be able to handle the competition in the industry as long as we consistently provide quality services.

It is for this reason that we have made our recruitment requirements to be very stringent to hire only qualified and experienced professionals that will be able to work with us to achieve our goals.

SEE: CNA School Business Plan


Above is a startup hospital business plan sample that bears the business name, ‘John Rutherford Hospital’.

The hospital will be located in Boston, United States, and it will be owned by Dr. John Rutherford.

Leave a Reply

Your email address will not be published. Required fields are marked *